Stellar XLM price closed the week beginning March 22 with a hammer pattern level, setting the backdrop for a surge in price. The stellar price climbed almost 8% the following week, and it's up 25% in the week at the time of writing. Today, momentum has stalled XLM just above the convergence of the 3.618 Fibonacci extensions of the 2019-2020 market at $0.546 and therefore the 0.786 retracement support level of the February crash at $0.545.

Stellar XLM price at an inflection point

For all of March, Stellar traded in a parallel channel on low volume and modest daily price movements. it had been a classic case of price compression which will result in price expansion and, in this case, to the upside.

Stellar is at a technical inflection point. it's going to take several days of consolidation before the remittance token can rally through the price resistance defined by the 0.786 retracement level, the 3.618 extension level, and therefore the all-time high at $0.608.

If the resistance is overcome, look to the 4.618 extension level of the 2019-2020 market at $0.690, followed closely by the 1.382 extension level of the February crash at $0.720, representing a gain of 34% from yesterday’s close. An optimistic profit target is that the 1.618 extension level of the February crash at $0.790.

No market forecast is a 100% probability. Thus, Stellar may reverse from the major resistance. Critical support is at the intersection of the channel highs with the January high around $0.440.

The second layer of support comes at the intersection of the channel lows with the 100-day simple moving average (SMA) around $0.360. A collapse below the channel will put the February lows’ confluence at $0.314 with the 0.50% retracement level of the 2020-2021 market at $0.317 within the crosshairs.

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